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University of Texas Bulletin 

Nu. 2003: January 10, 1920 

Putting the Home on a Business Basis 

HY 
EDYTHE P. HERSHEY 

Home Economics Extension Lecturer 




PUBLISHED BY THE UNIVERSITY SIX TIMES A MONTH, AND ENTERED AS 

SECOND-CLASS MATTER AT THE POSTOFFICE AT AUSTIN, TEXAS. 

UNDER THE ACT OF AUGUST 24. 1912 



«»n«graptv 




k 



The benefits of education and of 
useful knowledge, generally diffused 
through a community, are essential 
to the preservation of a free govern- 
ment. 

)am Houston 



Cultivated mind is the guardiaz? 

genius of democracy It is the 

only dictator that freemen acknowl- 
edge and the only security that free- 
men desire. 

Mirabeau B. Lamar 



f 



n, of a. 

uiAV 3 iy20 



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CONTENTS 

The purpose of this bulletin is to serve as a guide for 
those desiring to put the home on a business basis by keep- 
ing records and making a budget. It may also serve as an 
outline of suggestive material for clubs wishing to study 
the problems of household administration. 

The subject is discussed in the following form: 

I. The Budget .5 

The value and use of a budget, showing its 
relation to the high cost of living and the appor- 
tionment of the income. 

Suggestive budgets to be used as a guide in 
the determination of divisions of the income for 
food, shelter, clothing, etc. 

II. Steps in Making a Budget 11 

III. Household Accounts .- 15 

The value and purpose of household accounts. 
The classification of expenditures and system 
for the keeping of records. 

IV. Personal Accounts 20 

V. Business Methods for the Home 21 

Suggestions for methods to be used in the 
business of the household. 

VI. Considerations in Budget Making 23 

Discussions of items in budget: Housing, 
operating expenses, food, clothing, health, dona- 
tions, education, recreation, saving. 

VII. References 34 

A list of references for the practical house- 
wife. 



Putting the Home on a Business Basis 



PUTTING THE HOME ON A BUSINESS BASIS 

A Budget Is a Plan for the Future. A contractor would 
not attempt to build a home without a blueprint. He may- 
have a very clear idea of the type of house desired and the 
arrangement of rooms, but it is absolutely essential that he 
have the plans drawn in full detail before purchasing build- 
ing materials or starting to build. The same benefits are 
derived from making a written plan for spending your in- 
come as are gained from the blueprint for the builder. To 
budget your income means to make a written plan for spend- 
ing and saving. This makes it necessary to consider your 
necessities and your desires, so that you may apportion your 
income to satisfy these in the most desirable and efficient 
manner. In so doing you make a conscious choice, and there- 
fore determine the standard of living for your family. 

The income will to a large extent determine the kind of 
house in which you live, the clothes you buy, and in fact 
the way you provide for the needs and desires of your fam- 
ily. But, in addition, your choice will depend somewhat 
on the conditions under which that income is earned, the 
neighborhood in which you live, and the apportionment you 
make of your income to provide for your needs and desires. 
These factors will determine the way you live and the values 
you choose in life. This may be called your standard of 
living. 

The standard of living depends less upon the income than 
upon its intelligent expenditure. The income may be suffi- 
cient to provide for normal living, but extravagant expendi- 
tures may be made for food or clothes at the sacrifice of 
health or educational needs. 

"A normal standard of living may be defined as that 
which permits each individual to live as an efficient, healthy, 
human being, mentally, morally, and physically." 

In normal living provision must be made for each of the 
following : 



6 University of Texas Bulletin 

1. Housing adequate in space, air, and light to meet 

the personal and social needs of the family. 

2. Operating expenses to maintain the house by 

providing heat, light, water, service, etc. 

3. Food sufficient in kind and quantity to provide 

adequate nourishment. 

4. Clothing not only sufficient for protection but 

also to meet social requirements of the indi- 
viduals. 

5. Recreation as an essential phase of normal liv- 

ing. 

6. Education in order to further self-development. 

7. Donations to meet obligations of church, charity, 

or dependents. 

8. Savings to provide for "a sunny opportunity 

rather than a rainy day." 

With the rapid increase in the cost of living, it is essen- 
tial that the home be put on a business basis if the proper 
standard of living is to be maintained. The first step to- 
ward this goal is making a budget. 

Each family has its own particular problems and must, 
therefore, work out a budget to suit its individual needs. 
Every family can, however, be classified under one of the 
following divisions: 

1. The poverty or pauper level is that which signi- 

fies that the income is not sufficient to provide 
for adequate food, shelter, or clothing. Fam- 
ilies of this class are generally charity cases. 
Charity organizations bring these cases to the 
mere sustenance level, so that they may exist. 

2. The mere sustenance level is that which has an 

income only sufficient to provide physical re- 
quirements for food, shelter, and clothing. 
The food requirements can be measured very 
accurately, so that a budget can be determined 
for food, shelter, and clothing. These are the 
only items allowed in this level. 

3. The normal standard has an income which pro- 

vides for the physical requirements of life and 
also is sufficient to satisfy desires for improve- 
ment, such as health, recreation, education, 
religion, and savings. The suggestions given 
in this bulletin are for those who ivish to con- 
sider the normal standard. 



Putting the Home o?i a Business Basis 7 

4. The luxury level has an income which provides 
for normal needs and desires and also allows 
for increased expenditures for one or all of 
the needs without reducing any of the normal 
expenditures. The problems of this group 
are not so much in their choice of values but 
rather the relation of their choice to the group 
in which they live and society as a whole. 

With the constantly changing costs of commodities and 
the present high prices, it is very difficult to give other than 
approximate averages, as conditions arid prices vary in each 
locality. 

The budgets given on page 8 are suggestive but not 
ideal. The ideal budget for any family can only be deter- 
mined after careful records have been kept and the actual 
expenditures determined. 

The apportionment of the income may differ widely from 
the suggested budgets because of the needs of the individ- 
ual family. In many sections at the present time rents 
are extremely high. In order to maintain your standard 
of living, you may find it advisable to pay more for rent 
than is allowed in these budgets. If so, it will be necessary 
to reduce some other item, and it probably will be recrea- 
tion, education, or donations. Better housing conditions 
may reduce health expenditures. 



8 University of Texas Bulletin 

The following budgets are suggested as guides for in- 
comes from $1,800 to $5,000 a year. These budgets are 
compiled on the basis of an average family consisting of 
husband, wife, and three children under fourteen years of 
age. 

YEARLY DIVISION OF INCOME 

Operat- 
ing Ex- Cloth- Educa^ Recrea- Dona- Sav- 
Rent pense Food ing Health tion tion tions ings 
$1800 $216 $180 $720 $540 $50.40 $27.40 $27.40 $12.60 $27 



2000 


260 


220 


760 


560 


60 


40 


40 


12 


48 


2200 


330 


242 


770 


561 


66 


50.60 


48.40 


22 


110 


2500 


425 


300 


800 


600 


75 


75 


75 


25 


125 


3000 


540 


360 


810 


720 


99 


75 


75 


75 


246 


4000 


680 


480 


840 


800 


148 


212 


200 


240 


400 



5000 750 600 900 1000 150 250 200 400 750 

MONTHLY DIVISION OF INCOME 





Operat- 


















ing Ex- 


Cloth- 


] 


Educa- 


Recrea- 


i Dona- 


Sav- 




Rent pense 


Food 


ing Health 


tion 


tion 


tions 


ings 


$1800 $18 $15 


$60 


$45 


$ 4.20 


$ 2.25 


$ 2.25 


$1.05 $ 2.25 


2000 


21.65 18.35 


63.35 


46.65 


5.00 


3.33 


3.33 


1.00 


4.00 


2200 


27.50 20.18 


64.17 


46.75 


5.50 


4.21 


4.03 


1.83 


9.16 


2500 


35.42 25.00 


66.67 


50.00 


6.25 


6.25 


6.25 


2.09 


10.40 


3000 


45 30 


67.50 


60 


8.25 


6.25 


6.25 


6.25 


20.50 


4000 


56.66 40 


70 


66.66 


12.33 


17.66 


16.66 


20.00 


33.33 


5000 


62.50 50 


75 


83.33 


12.50 


20.85 


16.66 


33.33 


62.50 



DIVISION OF INCOME BY PERCENTAGES 

Operat- 
ing Ex- Cloth- Educa- Recrea^ Dona- Sav- 
Rent pense Food ing Health tion tion tions ings 



$1800 


12 


10 


40 


30 


2.8 


1.5 


1.5 


.7 


1.5 


2000 


13 


11 


38 


28 


3 


2 


2 


.6 


2.4 


2200 


15 


11 


35 


25.5 


3 


2.3 


2.2 


1 


5 


2500 


17 


12 


32 


24 


3 


3 


3 


1 


5 


3000 


18 


12 


27 


24 


3.3 


2.5 


2.5 


2.5 


8.2 


4000 


17 


12 


21 


20 


3.7 


5.3 


5 


6 


10 


5000 


15 


12 


18 


20 


3 


5 


4 


8 


15 



Putting the Home on a Business Basis 9 

Operating expenses will probably remain about the same 
unless service is employed. This, again, is a problem for 
the individual family. 

The food requirements can be measured more accurately 
than any of the others. At present food prices, the mini- 
mum cost of food for the average family of five will average 
$650 to $750 a year. Great care must be used in the se- 
lection of food as the allowance approaches the minimum; 
otherwise the quality will not be sufficient for nourishment 
and development. The average housewife has only a very 
limited knowledge of food values, and therefore will not be 
able to make selections as advantageous as those of a dieti- 
tian. An allowance of 10 per cent should be added to the 
standard food budgets for the waste brought about by un- 
wise selection. 

The cost of clothing will vary greatly with the individual 
family, depending on whether home sewing is done; the 
social and professional needs of the individual; and the 
care and utilization of garments. 

The allowance for health is made on the basis of the cost 
of care and prevention of sickness. Emergencies, such as 
operations or prolonged illness, must be provided for from 
past savings; otherwise the family will go into debt. 

The items of recreation, education, and donations will de- 
pend on the individuals and their interests. The education 
cost will be increased according to the age of the children. 
Special training or higher education must generally be pro- 
vided from the savings fund for those on a low income. In 
many cases the child earns his own way through f^chool. 

Keep in mind that these suggested budgets are on the 
basis of the average family of five, husband, wife, .ind three 
children under fourteen. In working out the budget for 
your family, make adjustments according to the number 
in the family. 

The lower the income, the greater the proportion spent 



10 University of Texas Bulletin. 

for food, clothing, operating expenses, and shelter, and the 
less spent for improvements such as health, education, rec- 
reation, donation, and savings. 

The following table gives the percentage spent for fixed 
expenditures and that for improvements, according to in- 
come: 

Percentage of income for: 

$1,800 $2,000 $2,200 $2,500 $3,000 $4,000 $5,000 

Fixed expenditures 92% 90% 86.5% 85% 81% 70% 65% 

Improvement 8 10 13.5 15 19 30 35 

Budget planning is of comparatively little value unless 
used to help understand problems of living costs and in 
adjusting expenditures to the income. Adjustments will 
not come from written plans alone, but self-control and 
guidance in spending must be used to make intelligent choice 
of what should be provided for the family. 

Too many families are attempting to live according to the 
standards of the neighbors or according to social conven- 
tions and habits, without making an intelligent choice of 
those things which would mean the most to them as indi- 
viduals. Living on a budget system means using intelli- 
gence and pleasure to buy those things which give the most 
happiness. Better satisfaction comes from money spent 
with conscience regulation of the expenditure according to 
right ideals and standards. The physical wants must first 
be met, and the remainder used to provide for intellectual 
and spiritual wants. Individuals must choose for them- 
selves those things which they most desire in life, but in- 
telligence should make the choice rather than blind imita- 
tion of fashion, fad, or neighbors. 



Putting the Home on a Business Basis 11 

STEPS IN MAKING A BUDGET 

I. In order to determine your present financial status, 
it will he necessary to make an inventory of your assets 
and liabilities. Are you in debt, just able to meet expenses, 
or getting- ahead ? 

Assets Liabilities 

Investments : stocks, bonds, All outstanding debts, mort- 

mortgages, life insurance gages, accounts, and notes 

(surrender value), fire in- payable. 

surance (to be considered 

an asset only in that it is 

a guarantee against loss). 
Accounts and notes receiv- . 

able. 
Real and personal property: 

ownership of buildings or 

lots, live stock, automobile, 

equipment, and furnish- 
ings. 
Cash on hand and in the 

bank. 

Compare your total assets with your total liabilities. 
Which of the following do your assets represent? 

1. Sound investments which bring fair interest? 

2. Savings which have been made because of wise 

expenditures and careful planning, or at a 
sacrifice of health and standards of living? 
One can not afl'ord to reduce the expenditures 
for food, clothing, and shelter in a way which 
might lower the health of the family. 

3. Does your real and personal property tend to 

increase or decrease your expenditures? Is 
your automobile an asset or a liability? 

Which of the following do j^our liabilities represent? 

1. Debts incurred to provide for the necessities of 
life because of a deficit the preceeding year? 
If there was a deficit last year, it may be that 
by careful planning you can avoid such deficit 
this year. 



12 University of Texas Bulletin 

2. Payments due on investments such as your home 

or education? Such payments will increase 
your assets. 

3. An attempt to keep up with your neighbors or 

social set in order to maintain your social 
position? Debts of this nature can not be 
justified, since they are the result of living 
beyond one's means, and therefore your stan- 
dards of living are on a false foundation. 
In planning your budget for the coming year, 
will your savings be added directly to your 
assets, or will they be used to pay previous 
debts ? 

II. Estimate yow income for the coming year. This 
should include: 

1. All money income such as salary, interest from 

investments, gifts, or other sources of money 
income. 

2. Material income such as food commodities raised 

at home, and any means of support provided 
' rather than procured from the money income. 
This may be food, shelter, clothing, or fur- 
nishings. If you use five dozen eggs a month 
which were produced by your own chickens, 
you will have added to your income the mar- 
ket value of those eggs. Another important 
contribution to the real income is the money 
value of the labor of the unpaid services of 
members of the family. No attempt should 
be made to calculate this material income 
when apportioning the money income for ex- 
penditures, but it should be considered in or- 
der to realize that certain expenditures may 
be reduced because of the material income. 
Unless the source of income is regular, such as 
for those who are on a salary basis, this esti- 
mate may only be a rough guide. In this 
case it is advisable to make your plan for 
spending on a possible minimum income 
rather than the maximum. 
Consider the ways in which the various mem- 
bers of the family contribute to the income. Is 
the responsibility shared by all? To what 
extent does the housewife contribute to the 



Putting the Home on a Business Basis 13 

income by her work in the home? If the 
housewife does her own sewing, cooking, 
washing, or other housework, her labor is a 
means of increasing the income. If the labor 
is done by employed service, in what way does 
the housewife meet her obligations ? A trained 
woman who has a business or profession may 
desire to continue her work outside the home 
and have her housework done. By so doing 
the actual income may be increased, but what 
will be the effect on the life in the home? 
It must be remembered that homemaking is 
a profession and should be recognized as 
such. 

III. Estimate last year's expenditures for: 

HOUSING 

Rent or taxes on property, insurance on property, repairs 
and additions, carfare to and from work. 

OPERATING EXPENSES 

Water, light, heat (cooking and fuel), sewer rent or tax, 
telephone, replacement of furniture and utensils, 
service, incidentals (cleaning rugs, tuning piano, 
etc.), cleaning materials. 

FOOD 

All food purchased. If there are home products, make 
note of approximate value of amounts consumed. 

CLOTHING 

All articles of clothing, upkeep and repair, remodeling, 
pressing and cleaning, mending materials, and ma- 
terials used in making garments. 

HEALTH 

Physician, dentist, occulist, nurse, other specialists, 
glasses, replacement of lens, drugs, extra foods, 
toilet articles, travel for health. 

DONATIONS, PHILANTHROPY, RELIGION, GIFTS 

Charity, church, gifts, dependents, general contributions. 

EDUCATION 

Periodicals, newspapers, books, schooling, lectures, music, 
dancing, art, language. Cost of education for those 
away from home includes tuition, living expenses, 
fees, and books. 



14 University of Texas Bulletin 

RECREATION, AMUSEMENT, ENTERTAINMENT 

Clubs, sports, concerts, theatres, movies, entertaining, 
travel, automobile. 

INCIDENTALS 

Expenses the family may incur not included in the above 
classification. 

SAVINGS - - 

Bank accounts, stocks, bonds, life insurance (surrenfler 
value), real estate. War Savings Stamps, and other 
investments. 

Unless actual accounts have been kept of the expendi- 
tures for the past year, the above estimates can only be 
approximated. 

Which expenditures could have been decreased to an ad- 
vantage? Which could have been increased? To what ex- 
tent did your expenditures fulfill the needs of the family 
as a whole and those of the individual members? 

IV. From the above analysis of last year's expenditures 
make an approximate estimate of your expenditures for the 
coming year, basing your estimates on your probable in- 
come, and considering your present financial situation. 

Fixed Expenditures Improvement 

Housing Health 

Operating expenses Donations 

Food Education 

Clothing Recreation 

Savings 

This will be your estimated budget. It ivill only be a 
guide, as a real budget can not be made tmtil actual accounts 
are kept for one year. 

Study each item carefully to determine the best appor- 
tionment and its relation to your standard of living. How 
much of your income is spent for the fixed expenditures and 
what proportion remains for advancement? 



Putting the Home on a Business Basis 15 



HOUSEHOLD ACCOUNTS 

It is only by a careful study of your income and expendi- 
tures that you can make a budget suitable to the require- 
ments of your family. To make such study necessitates 
the keeping of accurate records of expenditures. 

There are two types of accounts : 

1. The unclassified record of expenditures, simply 

giving a statement of expenditures as they 
are made. 

2. The classified record which separates the expen- 

ditures according to the kind, as indicated 
in the budget. 

The purposes of keeping records are : 

1. To indicate the amount and distribution of expendi- 
tures. 

2. To compare relative costs. 

3. To detect leaks. 

4. To estimate intelligently future needs. 

5. To focus the attention on the budget. 

6. To compare with standard budgets. 

7. To indicate the character and wisdom of expenditures 
and, therefore, the standard of living. Finally, the study 
will reveal the philosophies of life and lead to new estimates 
and appreciation not only of money but of time and vitality. 

The greatest value will be gained from classified accounts. 
Most women hesitate to keep records because of lack of 
bookkeeping knowledge and a feeling that it takes too much 
time. A classified system should be used which will be com- 
prehensive, simple, and definite. 

A Financial Record Book is published by the University 
of Texas which enables women to keep systematic records. 
The classifications are made as indicated in the budget, and 
indexes are provided to facilitate the use of the various 
sheets. The book is in loose-leaf form, so that it may be 
adjusted to suit the needs of the individual family and new 
leaves may be replaced when necessary. 



16 



University of Texas Bulletin 



The classifications in this system are made as follows: 

1. Annual Financial Inventory: 

Assets and liabilities 

2. Income: 

Salary 

Income from other sources 

3. Savings: 

Bank accounts Real estate 

Stocks and bonds Government saving stamps 

Life insurance Others 



4. Housing Record: 

Rent or taxes 

Insurance on 

property 

5. Ope7'ating Expenses: 



Repairs and additions 
Carfare to and from work 



Water Replacement of furniture 

Light and utensils 

Cooking heat Service 

Fuel Incidentals 

Sewer rent or tax Cleaning materials 

Telephone 

A monthly summary is made and separate 
sheets are provided to itemize the operating ex- 
penses for each month. 



Food Purchases: 




Meat 


Milk and cream 


Poultry 


Bread 


Fish 


Sugar 


Eggs 


Staples 


Fruit 


Luxuries 


Vegetables 


Ice 


Butter 


Miscellaneous 



A monthly summary is made and separate 
sheets are provided to itemize the food pur- 
chases for each month. 



Putting the Home on a Business Basis 17 

7. Cost of Home Pr^oduction: 

Fruits, vegetables, poultry, milk and butter, 

other productions. 
Record is made of the investment, labor, and 

miscellaneous costs of production. 

8. Home Production and Consumption: 

Record is made of the amount of food produced, 
the amount used at home, and its market 
value; the amount sold and receipts from 
sale; giving the total value of the amount 
produced at home. 

A monthly summary is made of the cost of pro- 
duction and total value of food produced at 
home. 

9. Clothing: 

An itemized record of clothing expenditures is 
made for each member of the family. 

A general record is made of materials pur- 
chased. 

10. Health: 

A record is made of health expenditures for 
each member of the family, giving cost of: 

Physician Drugs 

Dentist Extra foods 

Occulist Toilet articles 

Nurse Miscellaneous 

Other specialist Travel for health 

Glasses Record of illness 

Replacement of 
lens 

11. Philanthropy, Religion, Donations, Gifts: 

Charities Dependents 

Church General 

Gifts 

12. Christmas Gifts: 

Cards, ribbons, seals 

Kind of gift and to whom given 



18 University of Texas Bulletin 



. Education: 




General education: 


Periodicals 


Music 


Newspapers 


Dancing 


Books 


Art 


Schooling 


Language 


Lectures 




Individual education: 


Tuition 


Room and board 


Fees 


Miscellaneous 


Books 





14, Recreation, Amusement, Entertainment: 

Clubs 

Sports, equipment, supplies 

Concerts, theatres, movies 

Entertaining 

Travel 

15. Automobile Expense: 

Oil and gas Miscellaneous 

Replacement and Mileage 
Repairs Additions 

Record is made of initial cost of car, serial num- 
ber, license number, engine number. 

16. Incidentals: 

Other items not included in above classifications. 

17. Monthly Summary of Expenditures: 

Income — Salary, miscellaneous income 
Expenditures — Savings, housing, operating ex- 
penses, food purchased, cost of food produc- 
tion, clothing, health, religious donations, ed- 
ucation, recreation, incidentals. 
Balance: Total income 
Total expense 
Cash balance 

18. A Budget History Record: 

Provided to make note of any factors influencing 
the yearly expenditures. 



Putting the Home on a Business Basis 19 

A separate sheet is allowed for each of the classifications 
given. In keeping the record it is suggested that as daily 
cash purchases are made they should be jotted down in a 
small memorandum book to prevent the memory from being 
taxed or items being omitted. The items should be entered 
at the end of the day or summed up at the end of the week. 
Daily entries keep the records more accurate. 

Items paid for weekly should be classified and entered, 
making note of actual date of payment. At the end of the 
month, the expenditures under each class of iiems sliould be 
added. These totals are transferred to a monthly summary 
sheet, so that expenditures may be compared from month 
to month. 

The total cash income for the month plus the cash balance 
at the first of the month less the cash expenditures for the 
month should equal the cash balance at the end of the month. 
The purpose of keeping accounts is not to account for every 
penny but to control expenditures; therefore, one should 
not be discouraged if the calculated balance differs from 
the actual balance from time to time. The cash balance 
includes money on hand and the balance in the bank, which 
would be the amount remaining after all checks from that 
month had been paid out. 

At the end of the year the total expenditures under each 
classification are compared with the suggested budget. A 
budget is then made for the coming year based on these 
past expenditures. 

Only articles for which payments have been made should • 
be entered in the record book. 

In entering items from bills, note the date of payment, 
not date of entry. The record is a means of keeping the 
exact date of payment. 



20 University of Texas Bulletin 



PERSONAL ACCOUNTS 

The same general principles are used for keeping per- 
sonal accounts and making a budget as are used for tlie 
household. The following classifications are made: 

I. Income 
II. Savings 

III. Maintenance; 

Room rent Telephone 

Carfare Stamps and stationery 

Fuel Furnishings 

Board I^aundry 

Extra food 

IV. Clothing 
V. Health 

VI. Philanthropy, Religion, Donation, Gifts 

VII. Education 

VIII. Recreation 

IX. Incidentals 

X. Monthly summary 

XI. Budget history 

In making a study of the personal expenditures, there 
are many factors to be considered, such as whether one lives 
at home, or rooms and boards, or is partially dependent, 
independent, or has dependents. 

The clothing demands depend largely upon the profes- 
sional or business requirements as well as social needs. 

If you live at home and contribute to the home, the amount 
in excess of your room and board is an expenditure to be 
considered under dependents. 



Putting the Home on a Business Basis 21 



BUSINESS METHODS FOR THE HOME 

If the home is to be put on a business basis, the work of 
the household must be systematized. When accurate finan- 
cial records are kept and a budget is made the basis for all 
expenditures, a big step will have been taken in this direc- 
tion. 

Whenever possible, bills should be paid by check. The 
endorsed check is a legal receipt. 

A cardboard letter file will be convenient to file bills. The 
unpaid bills can be kept in the front of the box and filed as 
paid. 

Every woman who is managing a home should have a 
desk where all the bills and records are kept in order. This 
will save time and loss of important papers. The purpose 
of introducing systematic methods is to reduce time and 
energy expended in the work. It is necessary, therefore, to 
be sure that the system itself does not complicate your work. 
Card catalogues will be found helpful to file receipts, ad- 
dresses and telephone numbers, as well as for other pur- 
poses which the individual housewife may find. 

A study should be made of the arrangement of the house, 
especially the kitchen, since it is the workshop, so that the 
placing of the equipment may reduce steps, time, and en- 
ergy. 

A well thought-out plan should be used to carry on the 
work of the home, whether it be the financing, the making 
of the menus, the housecleaning, the marketing, or in fact 
'the entire daily routine. 

An inventory of the household articles should be made, 
giving : 

Article 

Date purchased 

Where purchased 

Value at date of inventory 



22 University of Texas Bulletin 

The inventory can most easily be made taking one room 
at a time. It is well to classify the articles. The following 
form is suggested : 

Furniture, listing that in each room 
Kitchen and dining-room equipment and utensils, in- 
cluding china, silverware, cooking utensils, etc. 
Clothing for each member of family 
Linens — bedroom and dining-room 
Pictures 
Books 
Jewelry 

Musical instruments 
Miscellaneous — bric-a-brac and other articles not listed. 

This inventory is most necessary when fire insurance is 
carried. Record should be made of the policy, giving pre- 
miums paid, expiration, amount of policy, company, and 
agent. 

This inventory should be placed in a strong box along 
with all valuable documents such as deeds, wills, insurance 
policies, stocks and bonds. Storage will be provided by the 
bank at a small yearly cost and will safeguard loss. 

With the Federal Income Tax, it now becomes necessary 
to take complete stock once a year of assets and liabilities. 

A family council should be held frequently to study and 
discuss the problems of the home. Each member of the 
family should have a fair share of the labor and responsi- 
bility and help to decide what the budget should be. The 
children should be given responsibility and taught to spend 
wisely and to save. 



Putting the Home on a Business Basis 23 



SOME CONSIDERATIONS IN BUDGET-MAKING 

Housing: What proportion of your income is spent for 
shelter? Compare your expenditure with those sug- 
gested : 

Income Per Cent Monthly Cost Yearly Cost 



$1800 


12 


$18.00 


$216 


2000 


13 


21.65 


260 


2200 


15 


27.50 


330 


2500 


17 


35.42 


425 


3000 


18 


45.00 


540 


4000 


17 


56.66 


680 


5000 


15 


62.50 


750 



If you own your home, have you estimated the cost of 
ownership by allowing a fair interest on your investment? 
Real estate dealers expect to have gross returns of ten per 
cent on their investments as a minimum. This will mean 
that a house costing $10,000 will probably cost about $200 
a year for upkeep. The interest on this $10,000 would be 
$800, making the cost $1,000 a year. Can you afford to pay 
this much for rent, or by owning are other expenditures re- 
duced ? 

Is your property protected by insurance? 

What are the advantages and disadvantages of ownership 
rather than renting? A stronger influence will be exerted 
on community conditions by an owner than a renter. Busi- 
ness and social relations are more firmly established when 
the home is owned. In ownership not only is shelter pro- 
vided but a permanent investment is made by acquired 
property. Is there any better investment than owning one's 
home? When the home is owned are there not advantages 
derived by the family, especially where there are children, 
M^hich can not be calculated in terms of money value ? The 
care and respect for property is generally a stronger char- 
acteristic among children whose parents own their home. 



24 University of Texas Bulletin 

How does the location of your home effect your standard 
of living? The environment controls in a large measure 
the ideals and standards the children form. Have you con- 
sidered the needs of your children or the social standard 
of the adults in choosing the place in which to live? Do 
the children miss school in bad weather because of the dis- 
tance? It is the natural tendency to do as the neighbors 
do. Do your neighbors have slipshod habits rn caring for 
their property or themselves? 

Does the location and type of house have any relation to 
the health conditions of the family? There should be suffi- 
cient space, light and air, and arrangement of rooms to fa- 
cilitate housework. Sufficient rooms should be provided 
to allow for privacy and comfort. If the house is properly 
screened, the dangers of infection from disease carried by 
flies and mosquitoes are decreased. Improper disposal for 
waste may contaminate the water supply. Are the heating 
facilities adequate for cold weather? 

Is the environment increasing or decreasing the value of 
your property? Study carefully the needs and cost ot re- 
pairs and additions to avoid depreciation. 

Operating Expenses: What proportion of your income is 
spent for operating expenses ? Compare your expendi- 
ture with those suggested : 

Income Per Cent Monthly Cost Yearly Cost 

$1800 10 $15.00 $180 



2000 


11 


18.35 


220 


2200 


11 


20.18 


292 


2500 


12 


25.00 


300 


3000 


12 


30.00 


360 


4000 


12 


40.00 


480 


5000 


12 


50.00 


600 



Operating expenses include: 

1. Water: Do you know the source of your water sup- 
ply? What means are employed to protect the health of 
the community by controlling the water supply? Is the 



Putting the Home on a Business Basis 25 

water tax included in your rent? What provisions are there 
for the disposal of waste? 

2. Light: What system of lighting is used? Do you 
read your gas and electric meters to detect leaks and wastes ? 
Is your lighting system the best possible for the protection 
of your eyes? 

3. Fuel: What kind of fuel is used for heating? For 
cooking? How do these increase or decrease the labor nec- 
essary for operation? Have you studied the comparative 
costs of fuels? 

4. Telephone: Is the expense for a telephone justified? 
To what extent is it advantageous to order by telephone? 
How does it better establish your business and social rela- 
tions? Is there a temptation to pay toll rather than post- 
age ? Is your telephone the cause of many unnecessary in- 
terruptions? Has it become your master or servant? 

5. Furnishings and Utensils: When buying these, do 
you consider them as investments or merely purchases to 
fulfill a need? Does your household equipment tend to in- 
crease or decrease the labor expended in housekeeping? 
When making purchases of furniture or utensils, do you 
make your selections according to utility, durability, general 
fitness in relation to other furnishings, relative cost, sani- 
tary and aesthetic qualities, or are you attracted by adver- 
tising bargains or imitations of social standards of others? 

6. Sei'vice: What kinds of service do you employ? If 
you provide maintenance for them, have you approximated 
the cost? What is the influence of living conditions, hours 
of labor, lack of standards, and wages on the domestic serv- 
ice problem? Do you understand the servants' work so 
that you are in a position to plan their duties and teach them 
methods ? What are you doing to help standardize the work 
of domestic labor? Do the furnishings and arrangement 
of the house increase the need for service? By what means 
could the amount be reduced? If no service is employed, 
could your time be spent to better advantage and increase 
the income sufficiently to provide service? 

7. Cleaning materials: Have you considered the expen- 
diture you make for cleaning materials? In purchasing, do. 



26 University of Texas Bulletin 

you consider the value and efficiency of the various types 
so as to reduce the cost? Is there any appreciable waste 
of these commodities? 

How does your total expenditure for operating expenses 
compare with that for shelter? Does the type of house you 
live in tend to increase the operating expenses? The cost 
of heating, lighting, and service can often be materially 
reduced by a better built and more simply arranged house. 

Food: What proportion of your income is spent for food? 
Compare your expenditure with those suggested: 

Income Per Cent Monthly Cost Yearly Cost 

$1800 40 $60,00 $720 

2000 38 63.35 760 



2200 


35 


64.17 


770 


2500 


32 


66.67 


800 


3000 


27 


67.50 


810 


4000 


21 


70.00 


840 


5000 


18 


75.00 


900 



In purchasing foods, do you understand relative food 
values and utilize this knowledge to get the greatest returns 
for money spent? Do you plan your meals according to the 
principles of nutrition? Do you plan your meals ahead? 
Do you fully realize the relation of diet to health? The 
responsibility of the housewife in feeding her family is to 
provide food adequate in kind and quality to meet the phys- 
ical needs of the body and, therefore, apportion the amount 
to be spent for food in order to make the wisest selections. 
Do you knov/ the cuts of meat or do you rely wholly on your 
butcher for this information ? Do you know the seasons for 
various foods? In what ways do you keep in touch with 
current market prices? Have you studied the local market 
facilities, or do you use the most convenient stores? 

What is your method of purchasing? Do you use tele- 
phone, mail orders, delivery, or cash and carry? How does 
your method affect the cost? What are advantages and dis- 
advantages of large quantity buying? Do you have ade- 
quate storage facilities? Does a large quantity tend to cause 
waste by spoilage or extravagant use? 



Putting the Home ov a Business Basis 27 

To what extent do you use ready prepared foods? Do 
you find them an economy of time and labor? Is this econ- 
omy sufficient to warrant the increased cost? 

Do you raise home products? In estimating the returns 
from these, have you allowed for a fair interest on the in- 
vestment? Do your returns compensate for the expendi- 
tures including those of time and labor? Are there values 
derived other than those which are measured by dollars and 
cents? Do you dispose of surplus materials in the most 
profitable way? 

The food requirements necessary to provide for the needs 
of the body are as follows : 

I. Building materials: 

1. Protein which is found in meat, fish, poultry, 

eggs, milk, cheese, nuts, legumes, and ce- 
reals. 

2. Minerals : lime or calcium, phosphorus and iron 

found in milk, cheese, eggs, celery, onions, 
green vegetables, fruit, meat, outer layer of 
the grains. 

II. F^iel foods: 

1. Starch, as found in rice, potatoes, macaroni, 

cereals. 

2. Sugar, found in sweet fruits, honey, sugar, 

sirups. 

3. Fats — meat fats and vegetable oils, found in 

milk, butter, cheese, bacon, nuts. 

III. Regulating foods: 

1. Bulky foods, such as cereals, fruits, and vege- 

tables. 

2. Acids found in fruits and vegetables. 

3. Water. 

4. Minerals. 

IV. Certain unknown chemical substances which are nec- 

essary to provide for growth and proper 
development. There are three types: 
1. Fat Soluble A — found in milk, cream, butter, 
eggs, animal fats, cod liver oil, leaves and 
stems of plants, i. e., spinach, lettuce, cab- 
bage. 



28 University of Texas Bulletin 

2. Water Soluble B — found in milk, dried peas 

and beans, cereal products having outer lay- 
ers of grain, eggs, etc. 

3. Water Soluble C — found in orange and lemon 

juice, cabbage, tomatoes, milk, fresh meat, 
etc. 

In an average well-mixed diet these requirements are gen- 
erally fulfilled. When the allow^ance for food is limited, 
there is danger of improper diet detrimental to health. At 
the current prices for food, the minimum allowance for a 
family of husband, wife, and three children under fourteen 
will be from $650 to $750 a year. In order to provide proper 
nourishment, it is suggested that the following division be 
made for those living within this amount: 

1. Milk: Allow one-fifth of total expenditure for milk. 
Each child should, if possible, be given 1 quart daily; each 
adult, 1 pint. 

2. Fruit and vegetables: Allow about the same expen- 
ditures for these as for milk. 

3. Cereal foods: About one-fifth for cereal foods, but 
if the vegetables, such as potatoes, dried peas, and beans, 
are increased, cereals may be decreased. 

4. Fats: Allow about two ounces per adult and one 
ounce for child each day. 

5. Sweets: Allow one to two ounces per person daily. 

6. Meat or meat substitutes: Allow not more than one- 
fifth of the expenditures for these. 

As the food allowance is increased, cereal foods are de- 
creased and fruits and vegetables increased. Eggs are 
bought in larger amounts and meats are increased. If ade- 
quate milk is provided, cream and more butter are added. 

Clothing: What proportion of your income is spent for 
clothing? Com.pare your expenditure with those sug- 
gested : 



Income 


Per Cent 


Monthly Cost 


Yearly Cost 


$18000 


30 


$45.00 


$540 


2000 


28 


46.65 


560 


2200 


25.5 


46.75 


561 


2500 


24 


50.00 


600 


3000 


24 


60.00 


720 


4000 


20 


66.66 


800 


5000 


20 


83.33 


1000 



Putting the Home on a Business Basis 29 

Do you purchase all garments ready made? When you 
do your own sewing, do you consider the cost of the labor 
which you put into making the garment? Can the time 
used for home sewing be utilized to any better advantage? 

When purchasing materials, do you base your selections 
on knowledge of textiles? Do you understand the care of 
the various textiles so as to avoid loss of color and shrink- 
age and undue deterioration? 

Do you purchase each garment as needed, or do you plan 
your needs from year to year so that the expenditure may 
be divided and selections made on the basis of color har- 
mony, appropriateness, and utility? Do you consider only 
the initial cost rather than the final cost of a garment in- 
cluding upkeep, repairs, and additions or remodeling? Have 
you formed your own standards of dress suited to your 
needs and individuality as well as income, or are you guided 
entirely by fashion ? 

When are bargains an economy? Do bargain sales induce 
you to make more purchases than you otherwise would? 

Is the quality of goods in installment stores equal to that 
in the other stores? Do you purchase through mail-order 
houses ? 

To what extent does good care lengthen the service of a 
garment? Do you teach your children to care for their 
clothes properly? 

A clothing budget will assist you in living within your 
clothing allowance as well as avoid large expenditures com- 
ing within a short space of time. Make a list of the clothes 
on hand. Considering the condition of these, make note of 
those which will need replacing this year or additional gar- 
ments needed and the probable cost. By considering your 
clothing needs for the year, you will be better able to ap- 
portion your expenditures and make the most profitable se- 
lections as well as avoid excesses and extravagances. The 
following form is suggested for making your clothing bud- 
get: 



30 



University of Texas Bulletin 











Number Needed 






Garment 


Number 


on 


Hand 


This Year 


Probable 


Cost 


* 















Health: What proportion of the income is spent for health? 
How does this compare with those suggested? 



Income Per Cent Monthly Cost Yearly Cost 

$1800 2.8 

2000 3 

2200 3 

2500 3 

3000 3.3 

4000 3.7 

5000 3 



4.20 


$ 50.40 


5.00 


60.00 


5.50 


66.00 


6.25 


75.00 


8.25 


99.00 


12.33 


148.00 


12.50 


150.00 



What are the health conditions of your family and the 
factors influencing these conditions? Proper food, shelter, 
and clothing are the prerequisites of health. The health 
should be protected by preventive measures such as care of 
teeth and other physical conditions. This can best be ac- 
complished by regular examinations. Do you understand 
and apply the principles of personal and community hy- 
giene? Have you reduced some expenditures at the sacrifice 
of health or could you reduce some in order to avoid ex- 
cesses and so improve health? 

Physical well-being should be the first consideration of 
the family. All other interests and activities should be sub- 
ordinated to health. The health standards of your family 
have a direct relation to those of the community, and vice 
versa. Are you fulfilling your obligations to both your 
family and the community ? 



Donations, Philanthropy, Religion, Gifts: What proportion 
of your income is spent for these items ? Compare your 
expenditures with those suggested : 



Putting the Home on a Business Basis 31 



Income 


Per Cent 


Monthly Cost 


Yearly Cost 


$1800 


.7 


$ 1.05 


$ 12.60 


2000 


.6 


1.00 


12.00 


2200 


1 


1.83 


22.00 


2500 


1 


2.09 


25.00 


3000 


2.5 


6.25 


75.00 


4000 


6 


20.00 


240.00 


5000 


8 


33.33 


400.00 



Do you do your giving systematically or wait until requests 
are made and give if possible at that time? Do you make 
pledges without stopping to consider the means of fulfill- 
ment? Do you intelligently consider the use to be made 
of money given or does it depend on the force of the appeal 
made to you ? Should gifts be made at the sacrifice of nor- 
mal living for your own family? Is the custom of giving 
gifts for various occasions a burden to you which you feel 
obliged to meet? Many personal gifts which are either 
given as remembrances or to repay social obligations are 
often extravagant and useless. Would it not be well to re- 
duce these and increase donations for the promotion of 
community welfare? 

Education: What proportion of the income is spent for 
education? Compare your expenditure to those sug- 
gested : 



Income 


Per Cent 


Monthly Cost 


Yearly Cost 


$1800 


1.5 


$ 2.25 


$ 27.40 


2000 


2 


3.33 


40.00 


2200 


2.3 


4.21 


50.60 


2500 


3 


6.25 


75.00 


3000 


2.5 


6.25 


75.00 


4000 


5.3 


17.66 


212.00 


5000 


5 


20.85 


250.00 



Every family should subscribe to a daily newspnper and 
periodicals. Where there is a public library, good litera- 
ture may be obtained at little or no cost. Opportunities 
for public lectures and concerts should be taken advantage 
of. Special lessons in music or art are often given to mem- 
bers of the family who are not gifted. Is this justified, es- 



32 



University of Texas Bulletin 



pecially when the income is limited ? A musical instrument 
increases the means of entertainment within the home and 
further develops the appreciation of music when wisely 
used. Your support should be given to the concerts and 
lectures held locally, otherwise the number of these oppor- 
tunities will be reduced. Educational costs can be reduced 
to an advantage while children are young, in order to pro- 
vide for later training and study. In what ways are you 
meeting the educational needs of your family? 

Recreation: What proportion of your income is spent for 
recreation? Compare your expenditure with those 
suggested : 



Income Per Cent Monthly Cost Yearly Cost 

$1800 1.5 

2000 2 

2200 2.2 

2500 3 

3000 2.5 

4000 5 

5000 4 



1 2.25 


$ 27.40 


3.33 


40.00 


4.03 


48.40 


6.25 


75.00 


6.25 


75.00 


16.66 


200.00 


16.66 


200.00 



Education, health, and recreation are closely inter- 
woven. Recreation is an essential requirement for nor- 
mal living. True recreation brings rest and renewed vigor 
to the body, refreshment to the mind, and adds to the cul- 
tural assets. When wisely chosen and directed, recreation 
will tend to increase earning power. Can the form of rec- 
reation provided for your family truly be called recreation, 
or is it temporary entertainment? Recreation need not 
mean much money expenditure, as it can be taken in the 
form of athletics, picnics, hikes, reading, etc. 

To what extent does the moving-picture house supply 
your recreation? This is a cheap form, but has its limita- 
tions and is not the type to be recommended for children. 
In all forms of recreation consider whether they are con- 
structive or destructive. 



Putting the Home on a Business Basis 33 

Savings: What proportion of your income did you save 
last year ? Compare your savings with those suggested : 

Income Per Cent Monthly Cost Yearly Cost 



$1800 


1.5 


$ 2.25 


$ 27.00 


2000 


2.4 


4.00 


48.00 


2200 


5 


9.16 


.110.00 


2500 


5 


10.40 


125.00 


3000 


8.2 


20.50 


246.00 


4000 


10 


33.33 


400.00 


5000 


15 


62.50 


750.00 



Do you have a system for regular saving ? Savings should 
be made possible because of wise expenditures, but not at 
a sacrifice of health and the needs of normal living. Sav- 
ings make a reserve fund possible so that unforeseen emer- 
gencies such as sickness, labor conditions, or change of oc- 
cupation may be met without lowering the standard of liv- 
ing. 

The most careful consideration should be given before 
making any kind of investment. It is well to consult a 
competent banker or lawyer. The government bonds are 
one of the most secure forms of investment. The average 
family can not afford to speculate on new enterprises. The 
interest on investments should be watched carefully, and 
when received the interest should be redeposited to com- 
pound it. Study your investments carefully to determine 
whether you could be taking advantage of another invest- 
ment giving a greater yield. 

We are beginning to learn that true thrift means a study 
of the present needs and desires of today in their relation to 
the needs and desires of tomorrow, so that we may attain 
those values in life which make for the greatest happiness. 
In planning for tomorrow, don't forget today. 



34 University of Texas Bulletin 



REFERENCES 

The following books are suggested as a reference list for 
the practical housewife : 

Feeding the Family, Rose : Macmillan Co., Dallas. 
Boston Cooking-School Cook-Book, Farmer : Little, Brown 

& Co., Boston. 
Care and Feeding of Children, Holt : D. Appleton & Co., 

New York. 
Clothing for Women, Baldt: Lippincott, Philadelphia. 
Housewifery, Balderston: Lippincott, Philadelphia. 
Household Engineering, Frederick: American School of 

Home Economics, Chicago. 
Home and Community Hygiene, Broadhurst: Lippincott, 

Philadelphia. 
Business of the Household, Tabor: Lippincott, Philadel- 
phia. 
Personal Hygiene and Home Nursing, Lippitt: World 

Book Co., Yonkers, N. Y. 

Health Service, Treasury Department, Washington, 

D. C. 



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